Sustainable Finance Collective Asia (SFCA)

Sustainable Finance Collective Asia | November 2016 1

Sustainable Finance Collective

Asia Launch Event | 22 November 2016

www.sfc-asia.com

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Thematic panel discussion – Circular EconomyLeonie Schreve, Managing Director, Global Head Sustainable Finance, INGMatthew Toy, Water International Client Director, Atkins




A circular economy is one that is restorative and regenerative by design,

and which aims to keep products, components and materials at their

highest utility and value at all times, distinguishing between technical and

biological cycles

- Ellen Macarthur Foundation


Linear economy Technological innovations Circular economy


Five circular business models by Accenture

Circular Supplies: Provide renewable energy, bio based or fully recyclable input material to replace single-life inputs

Resource Recovery: Recover useful resources/energy out of disposed products or by-products

Product Life Extension: Extend working lifecycle of products and components by repairing, upgrading and reselling

Sharing platforms: Enable increased utilization rate of products by making possible shared use/access/ownership

Product as a Service: Offer product access and retain ownership to internalize benefits of circular resource productivity

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwiOydfVtoHLAhVIbxQKHQK1AQ0QjRwIBw&url=http://newsroom.suez-environnement.com/background-session-recycling-plastic-one-of-the-challenges-of-the-circular-economy/&psig=AFQjCNGDVN5QNIgufrVeiE0KB4jHz2slfg&ust=1455888829523763

Sustainable Finance Collective Asia | November 2016

Circular Supplies Resources RecoveryProduct Life Extension Sharing Platforms Product as a Service

Smurfit KappaFor production of paper and cardboard company uses waste from tomato production.

AvantiumTechnology firm producing PEF. PEF is a new polymer that is 100% plant based and 100% renewable.

BundlesRenting of laundry machines on a pay-per-use basis

Netflix24/7 access to movies and tv-series based on a pay-per-use model

CaterpillarDesigns and produces heavy use products based on effective and extensive use and ease of repair.

Examples of the circular economy

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwicspDiuYHLAhXFPhQKHSuSCqkQjRwIBw&url=http://www.bls.gov/opub/btn/volume-2/reduce-reuse-recycle-green-technologies-and-practices-at-work.htm&psig=AFQjCNH6Ts6DxWbYKVEFqXUegZCkBxQTMg&ust=1455889661081596

http://www.avantium.com/

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjJyZDgvIHLAhUFxxQKHUQ8De0QjRwIBw&url=http://logok.org/caterpillar-logo/caterpillar-logo-logotype/&bvm=bv.114733917,d.d24&psig=AFQjCNFGKPcxVjfYFD3auocuyTLdZ2VHDQ&ust=1455890458468979

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi_icX0vIHLAhVDthQKHTH-CisQjRwIBw&url=http://fox59.com/2016/01/12/these-secret-netflix-codes-will-unlock-hidden-categories/&bvm=bv.114733917,d.d24&psig=AFQjCNFQ0Qa86JLW6TmKMnqhPI0qKLurjA&ust=1455890503474045

https://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi5nvG2vYHLAhWKPxQKHXr6ASsQjRwIBw&url=https://www.youtube.com/channel/UC2B9Jb-Qk5cjv_3MxoMZjgQ&bvm=bv.114733917,d.d24&psig=AFQjCNFOYs6Gg111fkbN5IMlXajCcxKEXw&ust=1455890634536986

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiuuq7VvYHLAhUHaRQKHVU3CdsQjRwIBw&url=http://www.forocoches.com/foro/showthread.php?t=1619011&page=2&bvm=bv.114733917,d.d24&psig=AFQjCNHHJzuYJy_7yaDhSwQUQ7uGlNq6LQ&ust=1455890692659119


The rise of Circular Economy in Asia

Used coffee grounds collected from Starbucks are turned into T-shirts, socks, and soaps by Taiwanese firm Singtex.

Lighting giant Philips give office landlords such as in Singapore free lights in return for a share of the energy saved.

discarded fishing nets are sold by local communities to carpet maker Interface to make fresh carpet tiles.

Home-sharing platforms Airbnb, PandaBed, car-sharing services Lyft,

Tripda and goods sharing apps SnapGoods and Rent

Tycoon

Initiatives to set up industrial parks that are

designed to create a circular economic system

that fully utilizes production-chain

resources.

Taiwan Singapore Philippines

OthersChina


Financial implicationsBalance sheet extensionCash flowCredit riskFinancingReporting


Financial industry’s role to playOther types of financing

Different view on collateral

End-of-life policy

Financing of the value chain


Role of Financial sector

• Other financing models

• Different view on residual value

• End of life policy

• Financing the value chain


Case Study – Ajman Wastewater


Emirate of Ajman

300,000 populationIndustry around port and inland

Close inter-relationship with Sharjah and Dubai


• City with growth of 7% per annum• 375,000 population in 10 years• New centralised wastewater system

• Sewers and interconnecting pumping stations• WWTP with outfall

• 95% connectivity to wastewater network• Tanker service for non-connected properties• Improvements to environment and City health

Conclusions


• WWTP located within a growing industrial area

• Industries require potable water for process and cooling

• High financial cost of potable water• Few water resources for developing

City• Variable quality of potable supply due to

high demand

Opportunity


Solution• Tertiary treatment plant built adjacent to WWTP• Membrane filtration to potable standards• Supply to high demand nearby industries• Tariff saving on potable water supply• Improved reliability of service and ease pressure on natural resources• Closed loop back to WWTP• 20% effluent reused in this way• 40% effluent reused for irrigation• Unexpected benefit – improvement to stability of WWTP process


Ajman Wastewater Concession is a great success story

Opportunity for wastewater re-use being realised

Exemplar for efficient wastewater treatment

Conclusions


www.sfc-asia.com

Closing remarks and Q&A



Sustainable Finance Collective Asia (SFCA)

Economy & Finance

Transcript of Sustainable Finance Collective Asia (SFCA)